ST2 - Judgement under Uncertainty Flashcards
What are interaction heuristics and biases?
a cognitive bias results from the usage of heuristics
(mental shortcuts: rule, strategy etc.)
What are the 3 main heuristics mentioned in the article?
Representativeness, availability, and adjustment & anchoring
What is representativeness?
Probabilities are evaluated by the degree to which A is representative of B, that is, by the degree to which A resembles B
What is the availability heuristic?
people’s tendency to use information that come to mind quickly
and easily when making decisions about the future (Deciding who gets promotion, remembering that one of them failed
one exercise)
What is the adjustment & anchoring heuristic?
where people start off with an initial idea and adjusts their beliefs based on this starting point (When judging the number of habitants in a neighbouring country we are likely to stick close to this amount of the comparing country)
Why are rational choices not always possible?
- Lack of time
- Too much information
